Cryptocurrencies backed by gold are exceeding the largest market in a historical manifestation for precious metal, which has increased around 9.7% so far this year in a new record of $ 2,880 per ounce in the midst of growing tensions of Commercial War
Pax Gold (Paxg) and Tether Gold (Xaut) have greatly benefited from the increase in precious metal, both increasing approximately 10% in line with the punctual price of gold. Each of these chips is backed by an ounce of Troy gold stored in a vault.
As expected, in the traditional market, the shares of gold miners have also increased. Vaneck Gold Miners ETF (GDX), a bottom quoted in the stock market (ETF) that tracks gold miners, has increased almost 20% this year, exceeding the S&P 500.
The price action has seen the supply of these tokens grow, and the tokens mints exceed burns for millions of dollars weekly. The transfer of volumes for cryptocurrencies backed by gold, according to the data of Rwa.xyz, has increased more than 53.7% month after month.
The price of gold has increased this year on tariff threats of both the United States and China, the holidays of the spring festival in the last country and a broader trend of growing demand. Last year, the demand for the precious metal reached 4,945.9 tons, worth around $ 460 billion, according to the Gold Council World Cup.
Meanwhile, most important cryptocurrencies have had problems so far this year. Bitcoin saw a modest increase of 3.6%, which leads to the bitcoin-was to a minimum of 12 weeks, while the ether has dropped more than 17.6%. The Coendesk 20 index has increased a bit 0.5%.
“The Gold Rally and the Bitcoin fall are not a failure of the ‘Digital Gold’ narrative, they are a configuration,” said Mike Cahill, central collaborator of the Red Pyth, Coindesk in a written statement. “At this time, the fears of commercial war and a strong dollar are fleeing from a flight to traditional safe shelters, but once liquidity returns and the risk of appetite rebounds, Bitcoin could catch up on a big time” .
“Intelligent investors know that BTC is still the most difficult asset next to Gold, and when Trump’s Pro-Crypto posture materializes in real politics, Bitcoin will benefit massively,” he said.
